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What Is Final Expense Insurance?

Final expense insurance is designed to cover the bills that your loved ones will face after your death. These costs will include medical bills and funeral expenses. Final expense insurance is also known as burial insurance. Unfortunately, even bare-bones funerals can cost thousands of dollars. The ins and outs of insurance policies can get tricky. Here’s what you need to know about final expense insurance.

Final Expense Insurance: The Basics

A final expense life insurance policy isn’t the same as what’s known as “insuring your life.” Insuring your life concerns leaving your family and loved ones with enough support after you pass away. Term and permanent life insurance value your policy as proportionate to your earning power now and for the rest of your life.

With funeral insurance, the value of your policy is proportionate to the expense of your desired funeral. While other forms of life insurance can top a million dollars, it’s rare for final expense insurance policies to get above $20,000.

Do I Need Final Expense Insurance?

The answer to that question will vary from person to person. Do you already have term or whole life insurance? If you do, that policy can help your loved ones pay for final expenses. However, if you have term life insurance and you outlive the policy term, it’s a different story. In that case, you may want to consider final expense insurance.  Alternatively, maybe your family will have plenty of assets to work with when you die. In that case, you could use what’s called “self-insurance.” “Self-insurance” is one of those terms that sounds more complicated than it is. To self-insure is just to use your own money rather than use a life insurance payout.

Could your family self-insure for your final expenses? It’s a good idea to assume around $10,000 for funeral expenses. But don’t forget to take into account whether you will want a catered party after the service. Or perhaps a trip abroad to scatter your ashes. Maybe you’ll end up leaving big bills behind. If situations like these sound like your situation, you may want to consider springing for final expense insurance. Additionally, it’s probably best not to count on the lump-sum death payment from Social Security to pick up the slack. It’s only $255.

Your family will always come first. You wouldn`t want them to bear huge and unexpected financial burdens at the time of your passing. No matter what your age, it`s absolutely essential to have a plan in place to protect your loved ones when you are no longer able. Final Expense insurance will pay for your funeral service, bills, and other associated costs.


What is Medicare Supplement Insurance (Medigap)?

Medigap is Medicare Supplement Insurance that helps fill "gaps" in Original Medicare and is sold by private companies. Original Medicare pays for much, but not all, of the cost for covered health care services and supplies. A Medicare Supplement Insurance (Medigap) policy can help pay some of the remaining health care costs, like:

   Copayments

   Coinsurance

   Deductibles

Some Medigap policies also cover services that Original Medicare doesn't cover, like medical care when you travel outside the U.S. If you have Original Medicare and you buy a Medigap policy, here's what happens:

Medicare will pay its share of the Medicare-approved amount for covered health care costs.  Then, your Medigap policy pays its share.

8 things to know about Medigap policies 

• You must have Medicare Part A and Part B.

• A Medigap policy is different from a Medicare Advantage Plan.  Those plans are ways to get Medicare benefits, while a Medigap policy only supplements your Original Medicare benefits.

• You pay the private insurance company a monthly premium for your Medigap policy. You pay this monthly premium in addition to the monthly Part B premium that you pay to Medicare.

• A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you'll each have to buy separate policies.

• You can buy a Medigap policy from any insurance company that's licensed in your state to sell one.

• Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company can't cancel your Medigap policy as long as you pay the premium.

• Some Medigap policies sold in the past cover prescription drugs. But, Medigap policies sold after January 1, 2006 aren't allowed to include prescription drug coverage. If you want prescription drug coverage, you can join a Medicare Prescription Drug Plan (Part D).

• It's illegal for anyone to sell you a Medigap policy if you have a Medicare Advantage Plan, unless you're switching back to Original Medicare.

• Medicare by itself has a high deductible for hospital admission, and it only pays 80% of eligible doctor costs. A serious illness could set you back many thousands of dollars.

                                                                                                                           (source: https://www.medicare.gov/supplements-other-insurance/whats-medicare-supplement-insurance-medigap)

A Medicare Supplement policy covers all or most out-of-pocket medical expenses providing you with peace-of-mind and potential savings. Let us guide you insorting through the numerous Medicare options. We can also help you in choosing a Medicare prescription plan that includes your specific medications.

Why Should I Call the Granite Agency of Michigan for Insurance?

Good question. There are a lot of insurance agents out there and it may seem like any agent or broker is as good as another. But we are decidedly different.

Let's face it, insurance jargon can be very confusing. We know the ins and outs of the insurance business, and our inside knowledge of many companies and many products will work to your advantage. In fact, different insurance companies often charge vastly different premiums for the exact same coverage. As independent agents, we are not employed by one particular company. Instead, we can select insurance products from among those companies that best address your unique concerns.We promise to focus our attention on your benefit exclusively.

Please don't hesitate to call us with your questions no matter whether you are already a valued customer, a potential client or if you simply need expert advice. There will never be a charge for our assistance or for a friendly, no-obligation chat.

 


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